CIO Outlook - A glimpse into 2024
The global economy is entering a new long term cycle. The last few decades have seen global growth driven by the ballooning of both financial and ecological debt. Both have reached a limit which will trigger deep changes in the current economic model: a transition towards a more sustainable, less optimised and globalised economic system is the only way to avoid significant value destruction.
This shift from seeking efficiency and optimisation to seeking resilience and sustainability will lead to increased dispersion, greater volatility, higher risk premiums and will restore a price for capital and liquidity. We welcome those developments as good news. Long-term investment discipline and culture, a robust platform with local deal sourcing and a strong alignment of interests will be necessary to generate superior returns in this new environment. For the investors that appreciate these features, significant investment opportunities are already emerging.
